Farm IT Help - Accounts
Book keeping encompasses much more than merely recording how much money we receive or spend, after all we want to be able to analyse where the money is spent, or how profitable items are that we sell. To achieve this we define accounts, and when we buy or sell an item we select which account is to be updated.
There are specific types of account defined by the system. These include the following
Income - Accounts which record money we receive - sales of goods, livestock, grants, subsidies etc.
Cost Of Goods Sold - Accounts for the purchase of livestock, seeds, items for resale.
Expense - Accounts which record money we spend - purchases of fertilisers, medical treatments, fuel, expendable items
Fixed Assets - Account for purchase of farm building, equipments etc
Bank - Bank accounts and cash accounts
Accounts Receivable - System account for controlling money we are owed.
Accounts Payable - System account for controlling money we owe.
TAX - System account for controlling VAT
The account type identifies to the system how to treat the account and whether the account represents an asset or liability.
The accounts are listed in the 'Chart Of Accounts' and we have already provided you with a selection of useful accounts for recording your transactions. Some of which you cannot change as they are reserved accounts that the system uses to calculate specific reports for example VAT, Accounts Payable, Accounts Receivable, etc.
You may add your own accounts to the system to track specific transactions and thus analyse specific data.
See Also